ASML shares lift. Sigma Healthcare, Pro Medicus, Technology One lead ASX this month to best gain in 1-year. SIG, PME, TNE earnings expected to grow - supporting their shares rising further

Firstly, let's pause on markets overnight. US equity and bond markets were closed for Thanksgiving, so attention turned to Europe. There, it’s important to note that stocks moved higher for the first time in three days because Europe’s third-biggest company, ASML $ASML Holding (ASML.US)$, saw its shares rise 2.4%. The entire semiconductor sector received a sentiment boost after reports suggested that new potential restrictions on Chinese tech and chip technology might not be as harsh. This positive news will likely support the tech sector when US trade resumes.

Sigma Healthcare $Sigma Healthcare Ltd (SIG.AU)$ is up the most this month, rising 42% after the ACCC approved its merger with Chemist Warehouse. Its earnings are now expected to grow by 35% next year and 53% the year after, which theoretically supports its shares moving up to new highs. However, Ord Minnett is the only broker that rates SIG as a buy, while Citi, Morningstar, and Jefferies rate it as a hold. The average price target is $1.80, but SIG last traded at $2.78.

Pro Medicus $Pro Medicus Ltd (PME.AU)$ shares gained 27%, making it the second-best performer this month after securing its biggest-ever contract—a $330 million deal with one of the largest non-for-profit healthcare providers in the US. For 10 years, PME will provide patient monitoring to Trinity Health, which has 93 hospitals in the US and 249 continuing and urgent care locations. The market sees its earnings rising 31% next year and 27% the year after, which should, in theory, support its shares moving up to new highs. However, only three brokers rate PME as a buy, while nine brokers rate it as a hold, with the average price target being $178.95 versus its last trading price of $246.97.

And last but not least, Technology One $Technology One Ltd (TNE.AU)$ shares rose 26% this month, making them the third-best performer. The business has been a key beneficiary of the move to AI and recently reported a 20% surge in annual recurring revenue. This provides a significant competitive advantage due to its Software-as-a-Service (SaaS) model, which offers predictable and recurring cash flows. The business is expected to remain profitable next year and see revenue growth of 15% and 14% the year after. Wilsons, CLSA (formerly known as Credit Suisse), and Jefferies are bullish on the stock and rate it a buy, with price targets as high as $35.00. However, the average analyst price target is $27.62, which is higher than its closing price from yesterday. This suggests that analysts believe its shares have run too high, with the stock being up 98% this year.